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Curbing 2018’s inflation needs prudent price control

Source: Vietnam News Agency(VAN) Time:2018-02-11 10:32:33

2017 was considered as a successful year in controlling inflation, with the figure kept under the set target of 4 percent compared with 3.53 percent in 2016. In 2018, the Vietnamese government aims to control the consumer price index at around 4 percent. Economic experts said it’s a feasible target, however there are some risks, requiring careful and flexible price control management.

The success in keeping inflation under 4 percent and achieving positive economic growth in 2017 created momentum for adjusting the State’s policies such as interest rate reduction in 2018, helping ease difficulties for businesses.

According to experts there are some risks, requiring careful and flexible price control management.

Nguyen Anh Duong, Head of Macro Economic Policy of Central Institute for Economic Management said: "Some factors that could affect inflation control are price adjustments of State-owned goods such as electricity price or price hikes in 2018, all these factors can cause pressure on inflation and the government as well as people".

According to Nguyen Tien Thoa, Deputy Chairman/Secretary General of Vietnam Valuation Association, ​there are many risks such as natural disasters and weather. If we don’t prepare well there will be price hikes, he added.

The expected price increases of energy and resource groups on the world market have affected domestic gas and oil retail prices, an input of manufacturing sectors.

In the first month of 2018, hikes in electricity and petroleum prices pushed consumer price index to 0.51 percent higher than that in December 2017.

PhD. Nguyen Minh Phong, economic expert suggested ​Vietnam ​to attach special attention to control inflation in 2018 as it’s part of 2017’s growth result as well as the easy-money policy of Vietnam and the world.

In order to keep inflation under 4 percent, sectors at all levels should take initiatives to implement effective measures to stabilise markets.